Record Surge in Paper Imports Poses Threat to India's Paper Industry

India's paper import figures have reached unprecedented heights, with a monumental 2.05 million tonne documented in the fiscal year 2024-25. This 33 percent surge, largely attributed to China, has raised alarms within the Indian Paper Manufacturers Association (IPMA) due to its potential negative impact on domestic growth.

The domestic sector, according to IPMA, is facing formidable challenges as these imports undermine local industry expansion efforts. The latest data reveals that such imports have more than doubled in a span of four years, escalating from 1.08 million tonnes in FY21 to the current 2.05 million tonnes.

Imports from China comprise 27 percent of total inputs, while the ASEAN bloc contributes 20 percent, amounting to a value of Rs 15,000 crore. IPMA President Pawan Agarwal noted that many small and medium-sized Indian paper mills have become commercially unviable under these circumstances. The association is urging the government to impose strict quality control, reassess trade agreements, and implement protective measures to safeguard the sector.

(With inputs from agencies.)